Is Mortgage Debt Out Of Control

Is Mortgage Debt Out Of Control

Is Mortgage Debt out of Control?

Is Mortgage Debt out of Control? | MyKCM

The housing crisis of the last decade was partially caused by unhealthy levels of mortgage debt. Homeowners were using their homes as ATMs by refinancing and swapping their equity for cash.

When prices started to fall, many homeowners found themselves in a negative equity situation (where their mortgage was higher than the value of their home). As a result, they walked away. This caused prices to fall even further.

Headlines are again talking about record levels of mortgage debt, making the comparison to the challenges that preceded the housing crash. However, cumulative debt is not an important data point. If we look at the debt as a percentage of disposable personal income, we are at an all-time low.

Here’s a visual representation of mortgage debt as a percent of income:Is Mortgage Debt out of Control? | MyKCMFurthermore, according to a new report from ATTOM Data Solutions, more than 1-in-4 homes with a mortgage have at least 50% equity. The report explains:

“Over 14.5 million U.S. properties were equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value — up by more than 834,000 from a year ago to a new high as far back as data is available, Q4 2013.”

Bottom Line

Unlike 2008, homeowners have a comfortable level of mortgage debt and are sitting on massive amounts of home equity. They will not be walking away from their homes if the housing market begins to soften.


Brian Hargrove Headshot
Author:
Phone: 919-830-5233
Dated: July 3rd 2019
Views: 169
About Brian: ...

Property Search









RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Raleigh NC Area Real Estate Market Update 2021 - Raleigh, Durham, Chapel Hill and
Real Estate Testimonial Gerald And Shayna First Time Home Buyers - Woohoo! It sure is a great day to
Apple Inc Is Coming To Wake County NC - Apple just announced a new campus
August Triangle Market Update - Market is hot in!

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Grow Local Realty
140 Raleigh Street
Holly Springs, NC
919-582-7340
919-867-6464

Other Locations